The Story of the Atlantic Telegraph

The same restoration of order was seen in the business of importations, which had been hitherto almost a matter of guess-work. A merchant who wished to buy silks in Lyons, sent out his orders months in advance, and of course somewhat at random, not knowing how the market might turn, so that when the costly fabrics arrived, he might find that he had ordered too many or too few. A China merchant sent his ship round the world for a cargo of tea, which returned after a year's absence, bringing not enough to supply the public demand, leaving him in vexation at the thought of what he might have made, "if he had known," or, what was still worse, bringing twice too much, in which case the unsold half remained on his hands. This was a risk against which he had to be insured, as much as against fire or shipwreck. And the only insurance he could have was to take reprisals by an increased charge on his unfortunate customers. This double risk was now greatly reduced, if not entirely removed. The merchant need no longer send out orders a year beforehand, nor order a whole ship-load of tea when he needed only a hundred chests, since he could telegraph to his agent for what he wanted and no more. With this opportunity for getting the latest intelligence, the element of uncertainty was eliminated, and the importer no longer did business at a venture. Buying from time to time, so as to take advantage of low markets, he was able to buy cheaper, and of course to sell cheaper. It would be a curious study to trace the effect of the cable upon the prices of all foreign goods. A New York merchant, who has been himself an importer for forty years, tells me that the saving to the American people cannot be less than many millions every year.